Rupee Extends Gains Against US Dollar
The Indian unit settled at three-week high of 86.80 a dollar on Monday as India's trade deficit narrowed more than expected.
The rupee extended gains against the greenback at open on Tuesday. The Indian unit opened 6 paise higher at 86.74 a dollar.
The Indian unit settled at three-week high of 86.80 a dollar on Monday as India's trade deficit narrowed more than expected.
"Indian Rupee rose to a high of 86.75 as inflows and a better trade deficit release. Rupee had sufficient dollar inflows which took it higher and may be very near resistance at 86.60. We advise importers to buy the dollars to hedge the near term exposure while exporters wait for above 87.20 to sell the dollars," said Anil Kumar Bhansali, head, treasury and executive director, Finrex Treasury Advisors LLP.
The dollar index started to recover from the five-month low of 103.22 in Asia session. As of 8:56 a.m., the dollar index was trading 0.19% higher at 103.56.
Market participants also refrained from placing significant bets before the outcomes of the major central banks' policy meetings, due later this week. The Bank of Japan, US Federal Reserve, and Bank of England all are due to release their policy decisions later this week.
Crude oil price continued to rise after it topped the $71-a-barrel mark in Monday's session. Prices rose as the US attacked Yemen's Houthis and vowed to keep on assaulting them until the group stops disrupting the trade operations at the Red Sea.
The May future contract of brent crude was trading 0.23% higher at $71.23 a barrel on the Intercontinental Exchanges as of 8:57 a.m.
